To
provide the agency with information and procedures regarding the processing
of Vacation Exchange payments

Eligible
Employees

Management/Confidential
employees in Bargaining Units 06, 13, 18, 40, 46, 52, 66, 96, and also
those employees in Bargaining Unit 79 whose agency has elected to participate
in the Vacation Exchange Program.

Officers and employees whose salaries are prescribed by Section 169 of
the Executive Law or whose salaries were prescribed prior to the enactment
of Chapter 55 of the laws of 1979 are ineligible for the payment.

Effective
Date(s)

Vacation
Exchange payments will be made in a separate check dated November 29,
2001 for employees in Institution agencies and December 5, 2001 for employees
in Administration agencies.

Specifics

Chapter
74 of Laws of 2000 provides for a cash payment for employees in any of
the above named bargaining units who earn and accumulate vacation credits
and elect to exchange such credits in units of full days up to a maximum
of 5 days, provided that at the time of such election the credits total
35 days or more. The election of the vacation exchange must have been
made by the last day of the payroll period in which July 1, 2001 fell
(7/4/01 for Administration agencies and 7/11/01 for Institution agencies).

Eligible employees who were part-time during the filing period and had
the appropriate number of pro-rated vacation credits may have requested
to exchange a pro-rated number of vacation credits, based on the percentage
of time worked, in exchange for a Vacation Exchange lump sum payment.
Example: An employee who was 50% during the filing period who had at least
17 ½ days of vacation credits may have requested a maximum of 2.5 full
days of Vacation Exchange.

Eligible employees who were on Voluntary Reduction at the time the request
was filed are eligible for a maximum of 5 full days of Vacation Exchange.

The Vacation Exchange payment is calculated based on the salary (including
additional salary factors) in effect on 10/1/01 provided the employee
is active on the payroll (including employees who are on a paid leave
of absence) and in an M/C Bargaining Unit on 10/1/01.

If the eligible employee is inactive, on a leave without pay, or in a
Bargaining Unit that is other than M/C on 10/1/01, the Vacation Exchange
payment is calculated based on the salary (including additional salary
factors) in effect on the last day prior to 10/1/01 that the employee
was last paid from an M/C position.

The agency must use the following procedures when reporting the Vacation
Exchange earn codes:

VEX Vacation Exchange: This code is used to pay salaried employees.

Earn
Begin Date:

For
employees that are active on the payroll in an M/C position on 10/1/01,
enter 10/1/01. For employees who on 10/1/01 are inactive, on leave
without pay, or in a Bargaining Unit other than M/C, enter the date
in which the employee was last paid from an M/C position that is
prior to 10/1/01

Earn
End Date:

Enter
the same date as the Earn Begin Date.

Days:

Enter
the number of days of Vacation Exchange.

The system
will automatically calculate the amount of the Vacation Exchange payment
using the salary and additional salary factors in effect on the date
entered in the Earn Begin Date field.

VXO Vacation Exchange Override: This code is used to pay hourly employees
or daily employees paid as FEE.

Earn
Begin Date:

For
employees that are active on the payroll in an M/C position on 10/1/01,
enter 10/1/01. For employees who on 10/1/01 are inactive, on leave
without pay, or in a Bargaining Unit other than M/C, enter the date
in which the employee was last paid from an M/C position that is
prior to 10/1/01

Earn
End Date:

Enter
the same date as the Earn Begin Date.

Days:

Enter
the number of days of Vacation Exchange.

Amount:

Enter
the total amount of the Vacation Exchange payment.

Separate
Check

The
Vacation Exchange payment is taxable, but non-pensionable, and will be
made in a separate check, regardless of whether the earnings is submitted
timely or at a later date.

There is no direct
deposit for this payment.

If an employee's
existing tax record in PaySR reflects an additional tax amount, the additional
amount will be withheld from both the regular check and the Vacation Exchange
check. In order to avoid an over-withholding of tax in the payroll period
the Vacation Exchange payment is processed, agencies may want to review
the tax panels of active and inactive M/C employees to determine if an
additional tax amount currently on the record requires follow-up action.

The earn code
VEX or VXO will appear on the payroll register. The earn code description
Vacation Exchange or Vacation Exchange Override will appear on the employee's
check stub.

Questions

Questions
regarding this payment may be directed to the payroll auditor.